Chevron signs liquefied-gas deal with Tokyo Electric

WilliamSpain

CHICAGO (MarketWatch) -- Chevron Corp. said Saturday that its Australian subsidiary has made a deal with the Tokyo Electric Power Co. to deliver 4.1 million tons of liquefied natural gas per year, for up to 20 years, from the Wheatstone field in northwestern Australia.

Under terms of the agreement, Tokyo Electric (9501) will also acquire 15% of Chevron's
CVX, -0.86%
equity stake in Wheatstone field licenses and an 11.25% stake in natural-gas processing facilities to be developed onshore.

"We are pleased to welcome [Tokyo Electric] as a foundation customer and equity partner in the Wheatstone project as we move the development forward," George Kirkland, an executive vice president at Chevron, said in the announcement.

Wheatstone's initial phase will process up to 8.6 million tons of liquefied natural gas a year and will include a domestic gas plant with a final investment decision expected in 2011, the company said.

Earlier this fall, Chevron said it had signed a binding agreement with Apache Julimar Pty Ltd, a subsidiary of the Apache Corp.
APA, -1.82%
that will give Apache a 16.25% equity interest in Wheatstone, while a unit of the Kuwait Foreign Petroleum Exploration Company will get an 8.75% stake.

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